World Economy

N. Korea Economy Grew Faster Than Eurozone

N. Korea Economy Grew Faster Than EurozoneN. Korea Economy Grew Faster Than Eurozone

North Korea’s economy grew by 1.0% in 2014, according to South Korea’s Central bank. This is 0.1% less than in 2013, but is still 0.1% more than that of the Eurozone in the last year.

North Korea’s economy expanded by 1.0% to $29.85 billion in 2014, according to a recent report by South Korea’s central bank, Bank of Korea, Sputnik reported.

The increase in economic activity last year was attributed mainly to the growth in services and building while farming, mining and manufacturing saw slower growth, the central bank said.

Services rose 1.3% in 2014 on-year, up from 0.3% in 2013. The service industry made up 31.3% of the North Korean economy last year, up slightly from 30% in 2013. Retail sales, food, and accommodation, logistics and communications all expanded from a year earlier.

Construction was up 1.4%, rebounding from a 1.0% decline in 2013, with an increase in buildings offsetting declines in road and plant construction.

Total North Korea trade was at $7.6 billion, up 3.7% from 2013. Exports fell 1.7% year-on-year while imports jumped 7.8% on increased demand for machinery and textiles. More than 90% of North Korea’s trade is with neighboring China.

The BOK’s analysis however did not include black market economic activity that has grown steadily in recent years, creating a consumer class with demand for products such as cosmetics, smartphones, fruit juices, and foreign clothes, according to residents and visitors.

However a drought could dent economic activity this year, as North Korea has said it is the worst it has seen in 100 years although Seoul has said it seems to be easing.

Meanwhile, data released by Eurostat earlier this year shows Eurozone growth numbers at 0.3% for the final three months of the last year, above the 0.2% expected, leaving the bloc’s economy 0.9% larger than a year earlier.